Consumer packaged goods distributors that sell directly to retail (grocery, convenience store, etc.) are commonly referred to as Direct Store Delivery (DSD) distributors. DSD distributors are all about maximizing sales velocity and brand loyalty. A positive buyer experience and high customer satisfaction are crucial to accomplish these goals. For that reason, DSD drivers and representatives typically perform a wide range of other tasks in addition to delivery. Some examples include:
- Check and Manage Stock Levels
- Place pre-sale orders for replenishment and new products.
- Shelf stocking and rotation
- Planograms and effective product placement.
- Set up promotional displays and signage.
- Work closely with store personnel regarding sales, promotions, delivery times, and other operational matters.
"Choosing the right DSD technology can significantly impact your operational efficiency and long-term scalability"
To succeed in this challenging environment, DSD businesses look to modern mobile technology to automate their work. They need technology that is powerful yet easy to learn, and easy to use by drivers and field reps.
When considering the right DSD technology, a critical question often arises: should you invest in an “All-in-One” DSD application? Or an “ERP-Friendly” DSD solution which seamlessly integrates with your specific ERP software?
Choosing the right DSD technology can significantly impact your operational efficiency and long-term scalability. Let’s look at both options.
All-in-One DSD Software
There’s no burying the lead here. The #1 reason some companies invest in all-in-one DSD software systems is simplicity. With an all-in-one DSD, the business only needs to license one piece of software. As their name implies, “All-in-One” DSD’s typically try cover all the necessary functionality in one solution. This includes mobile DSD functions, back-end tools for planning daily routes as well as basic functionality for inventory, ordering, customers, pricing and promotions, collections, and warehouse management. In some cases, all-in-one DSDs also offer some financial accounting capabilities, including general ledger, accounts payable, and banking. But it’s more common for companies using an all-in-one DSD app to also invest in an accounting software package such as QuickBooks.
All-in-one DSD apps can be a great starting place for a new or smaller company. However, as companies scale up; adding more vehicles, more routes, and more territories, an all-in-one DSD may not be enough. Large, growing companies typically require more integration. They need higher precision and more capabilities for planning and measuring business activity. In other words, they need a real full-featured ERP system. In an ERP environment, an all-in-one DSD application may lead to duplication of data as well as integration challenges. That leaves the business with a quandary – where to manage orders, inventory, warehouse – in the all-in-one DSD app or the company ERP? Which system is their single source of truth?
ERP-Friendly DSD Software
DSD software is purpose-built to integrate with a full-featured ERP, which gives companies the best of all worlds. The DSD software and mobile device application provide all the capabilities required for delivery and route selling. The software also includes sophisticated tools for route planning and optimization, tracking orders, deliveries, and maintaining perpetual inventory, driver location, proof of delivery, services times, surveys and a wide range of other powerful functions. However, an ERP-Friendly DSD software doesn’t try to be an ERP, it stays “in its own lane” and works in-concert with your ERP, employing advanced bi-directional integration – providing the ERP with DSD information. In this way, the company enjoys the benefits of a fully featured ERP integrated with best-in-class DSD functionality. While this does mean investing in two major software systems, an ERP-Friendly DSD software maintains the ERP as your single source of truth but allows you to grow and scale virtually without limit – both in terms of satisfying customer needs – as well as back-office planning and measuring.
More about XMC and Direct Store Delivery
XMC is built to bring out the best in your Direct Store Delivery team. And XMC harnesses and extends the power of your ERP.
